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Seventh Edition

Macroeconomics N. Gregory Mankiw

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Ten Principles of Economics

© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Wojciech(Gerson((183111901)(

Principles of

In this chapter, look for the answers to these questions

•  What kinds of questions does economics address?

•  What are the principles of how people make decisions?

•  What are the principles of how people interact? •  What are the principles of how the economy as a whole works?

© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

What Economics Is All About §฀  Scarcity: the limited nature of society’s resources §฀  Economics: the study of how society manages its scarce resources, e.g. §฀  how people decide what to buy, how much to work, save, and spend §฀  how firms decide how much to produce, how many workers to hire §฀  how society decides how to divide its resources between national defense, consumer goods, protecting the environment, and other needs © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

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The principles of HOW PEOPLE MAKE DECISIONS

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